Bangladesh is considering raising the top income tax rate to 35% for its highest earners in the upcoming national budget, a move aimed at narrowing the country's widening wealth gap, according to sources at the National Board of Revenue (NBR).

Taxpayers earning more than Tk1.5 crore annually – over Tk12.5 lakh per month – would fall under the proposed higher slab, up from the current 30% ceiling applied to income above Tk35.75 lakh a year.

If approved, the revised rate is expected to take effect from FY2028-29 and remain in force for three years. The finance minister is likely to table the proposal in June.

"The objective is to impose higher taxes on the super-rich to reduce income inequality between the rich and the poor," a senior NBR official said on condition of anonymity.

NBR officials estimate that more than 30,000 taxpayers fall within this bracket, with the measure projected to generate an additional Tk4,000 crore annually. NBR Chairman Abdur Rahman Khan had first indicated the plan in March during budget discussions.

The proposal has drawn mixed reactions. Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman called the move broadly positive in principle, saying higher earners should contribute more, but warned that rate hikes alone would not significantly improve revenue unless tax evasion is addressed.

Centre for Policy Dialogue (CPD) Additional Research Director Towfiqul Islam Khan also cautioned against repeatedly increasing pressure on compliant taxpayers, arguing that structural weaknesses in tax administration remain unresolved and that expanding the tax base should be the priority.

Taking a stronger view, tax expert and SMAC Advisory Services Managing Director Snehasish Barua called the proposal a "fiscal misstep," arguing that it penalises honest taxpayers while ignoring the large shadow economy.

He noted that nearly two-thirds of 12.8 million e-TIN holders do not file returns, leaving the tax net "dangerously narrow." He warned that higher marginal rates, combined with wealth taxation, could raise effective burdens further, risking capital flight and discouraging domestic investment and employment generation.

Instead, he urged greater reliance on digital tracking systems to formalise the economy and incentivise transparency rather than overburdening a small compliant base.

Union Capital Limited, a non-bank financial institution, has recommended no dividend for the financial year ended 31 December 2025, as the company continues to grapple with mounting losses and a deeply negative net asset value.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (20 May), the company posted a consolidated net loss after tax of approximately Tk42.50 crore for the year.

Following the announcement, its share price slipped 2.08% to Tk4.70 on the premier bourse.

The company's consolidated earnings per share (EPS) for 2025 stood at negative Tk2.46 — an improvement from the negative Tk11.99 recorded in 2024.

Management attributed the narrower loss primarily to reduced provision requirements for loans and advances, higher recoveries from written-off clients, and lower operating expenses through cost control measures.

Despite the improvement in EPS, the consolidated net asset value (NAV) per share deteriorated further to negative Tk65.49, from negative Tk63.02 a year earlier.

The overall loss was largely driven by a decline in net interest income, investment income, and fee and commission earnings.

In the first quarter of 2026 (January–March), Union Capital reported a consolidated net loss after tax of Tk16.31 crore. Quarterly consolidated EPS fell sharply to negative Tk0.95, from negative Tk0.07 in the same period last year. The company said the decline was driven by lower interest income and reduced provision releases stemming from weaker recoveries against non-performing loans.

As of 31 March 2026, the consolidated NAV per share stood at negative Tk66.43, while net operating cash flow per share remained negative at Tk0.61.

The company has scheduled its Annual General Meeting for 29 July 2026, with the record date for entitlement set for 22 June, when shareholders will review the annual performance alongside other agenda items.

Britain’s annual inflation rate fell more than expected in April, largely due to a drop in energy prices in the months before the Middle East war, official data showed Wednesday.

Analysts said they expected the rate to shoot back up in the coming months after the US-Iran conflict sent oil and gas prices soaring.

The Consumer Prices Index (CPI) rose by 2.8 percent in the 12 months to April, down from 3.3 percent in March, the Office for National Statistics (ONS) said in a statement.

Analysts’ consensus forecast had been for a slowdown to 3.0 percent in April.

“There was a notable fall in annual inflation led by lower electricity and gas prices,” ONS chief economist Grant Fitzner said.

“This was due to the government’s energy bill support package... along with lower global wholesale energy prices before the conflict in the Middle East,” he added.

UK finance minister Rachel Reeves is set to deliver fresh cost-of-living support to millions of Britons by reportedly announcing she will cancel her pre-war plans to hike fuel duties.

“Over today and tomorrow I’ll set out the next phase of how we will support UK households,” Reeves said in a statement after the inflation report.

“The war in Iran is not our war but one we will need to respond to,” she added.

The planned action also comes after the Labour government suffered heavy losses to the hard-right Reform UK and the left-wing Greens in local and regional elections this month.

That triggered a leadership challenge to Prime Minister Keir Starmer, with Wes Streeting resigning as health minister as he bids to oust him.

Ruth Gregory, deputy chief economist at Capital Economics, said the drop in British CPI inflation “feels like the lull before the storm”.

“We expect inflation to hover around three percent until July,” she said.

Susannah Streeter, chief investment strategist at Wealth Club, said that while “the softer-than-expected inflation reading will come as welcome relief to policymakers and households... concerns remain that higher energy costs and geopolitical tensions could yet feed through”.

Worries over a renewed inflation spike, after prices surged following the Covid pandemic and Russia’s invasion of Ukraine, are pushing up government bond yields around the world.

The return on the 30-year US Treasury bond reached the highest level since 2007 on Tuesday, while UK rates have hit peaks not seen for decades.

Consumer inflation jumped in both the United States and eurozone in April, to 3.8 percent and 3.0 percent year-on-year respectively.

Indonesian President Prabowo Subianto said on Wednesday that his government will centralise exports of key commodities as part of efforts to boost state revenues and tighten the country's grip over its abundant natural resources.

Prabowo said in a fiery speech to parliament that Indonesia had lost as much as $908 billion in revenues in the last 34 years because its commodities were being sold on the cheap, adding that key exports like palm oil and coal would in future be sold via a central government-run enterprise.

Indonesia, a global commodities powerhouse, is the world's largest exporter of thermal coal and palm oil.

"Today the Indonesian government that I lead will issue a regulation on management of commodity exports," Prabowo said.

"The issuance of this regulation is a strategic step to strengthen management of commodity exports," he said.

"All sales of our resources, from palm oil, coal must be through a SOE selected by the government...as sole exporters," he added.

Prabowo's remarks confirm earlier accounts from two sources familiar with the matter, who said Indonesia was planning the move as part of a drive to strengthen government oversight over its natural resources.

Rumours about the plan have spooked the market on concerns that it could lead to changes in pricing mechanisms and squeeze trader margins, with Jakarta's main stock index shedding 3.5% on Tuesday and close to 2% on Wednesday.

The move by Prabowo, who has vowed to optimise revenue from the country's natural resources, is aimed at addressing concerns about under-invoicing and transfer pricing by exporters, the sources said. The sources declined to be named because they were not authorised to speak publicly.

Prabowo said Indonesia's natural resources were sufficient to deliver welfare to the entire country if they were managed according to the constitution.

"In the opinion of the government - and I am sure every patriot will support this - the earth, water and all the resources within it must be enjoyed by all Indonesians," he said.

Despite being rich in resources as well as a G20 country, Indonesia had not managed the economy well enough to boost state revenues, he added.

The regulations required to bring the plan into action had not yet been finalised, one of the sources said earlier.

As Bangladesh prepares to graduate from least developed country (LDC) status, the country needs to modernise its intellectual property (IP) laws to attract more foreign investment, especially from the United States, and strengthen confidence among global businesses, a US diplomat said yesterday.

Shilpi Jha, senior commercial specialist and IP policy advisor for South Asia at the US embassy in New Delhi, made the comment at a roundtable titled “Advancing the IPR Framework and the Way Forward”.

The American Chamber of Commerce in Bangladesh organised the event at The Westin Dhaka.

Stronger and internationally aligned intellectual property protection is no longer just a legal requirement, but an economic necessity, the diplomat said, adding that an updated IP framework would help Bangladesh integrate more effectively into the global economy, boost exports, encourage innovation, and attract foreign direct investment.

Bangladesh has already taken important steps by enacting the Patent Act 2023 and introducing a new Design Act. However, further reforms are needed to align the country’s intellectual property system with international standards and best practices, she said.

Bangladesh currently enjoys certain flexibilities under international agreements because of its LDC status, which has delayed the full implementation of some reforms.

Nevertheless, policymakers and businesses increasingly recognise the importance of stronger IP protection for long-term economic growth, the diplomat added.

Under the Design Act, innovators can now register original industrial designs not previously available in the market.

At the same time, efforts are underway to update trademark laws to meet international standards.

Experts believe these reforms could pave the way for Bangladesh to join major international IP systems such as the Madrid Protocol and the Patent Cooperation Treaty (PCT).

Joining the Madrid Protocol would allow Bangladeshi businesses and entrepreneurs to apply for trademark protection in multiple countries, including the United States, India, and Nepal, through a simplified process from within Bangladesh.

Similarly, becoming a member of the PCT would enable Bangladeshi inventors to seek patent protection in numerous countries through a single international application.

Industry insiders argue that effective intellectual property protection is not only important for attracting foreign investors but also essential for supporting local industries, encouraging innovation, and helping businesses compete globally.

Weak enforcement, they warn, discourages multinational companies from introducing advanced technologies and premium products in Bangladesh due to fears of counterfeiting and misuse.

Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh, underscored the strategic necessity of robust IPR enforcement for the nation’s future.

He emphasised that a secure IPR framework is vital to attracting increased foreign direct investment while giving global importers and promoters the confidence to source products from Bangladesh.

The Bangladesh Bank is weighing whether to adjust policy rates in its upcoming monetary policy as internal discussions show sharp differences over the impact of interest rates on investment, inflation, and growth.

The issue was discussed at a meeting today (20 May), chaired by the governor, attended by all deputy governors, executive directors, and directors. The meeting was part of a series of consultations ahead of the next monetary policy statement.

The debate comes as lending rates remain elevated following recent policy rate hikes. Businesses have repeatedly urged the central bank to reduce rates, but no action has been taken so far.

Officials at the meeting expressed divergent views. One group argued that lower interest rates are necessary to boost investment and employment, warning that high borrowing costs risk undermining Bangladesh's competitiveness compared to neighbouring economies. They said rate cuts are essential for stimulating private sector credit growth and job creation.

Another group opposed immediate cuts, citing the "9-6 interest rate regime" between 2021 and 2024, when artificially capped lending rates failed to deliver expected investment growth. They argued that this period shows that reducing interest rates alone is insufficient to drive economic expansion.

A central bank official told TBS that Deputy Governor Zakir Hossain Chowdhury said Bangladesh is not heavily credit-dependent and that people do not typically borrow in response to price increases.

He reportedly noted that the link between interest rates, inflation, and investment is not strongly direct in the local context, adding that price increases often stem from weak market management, while strong agricultural output helps reduce inflation.

Deputy Governor Md Kabir Ahmad also said conventional economic models do not always reflect current realities and stressed that policy decisions must be taken cautiously and based on context.

The meeting further discussed profitability trends in stronger banks. Officials said deposit migration from weaker to stronger banks allows some institutions to raise deposits at lower costs while still charging higher lending rates, significantly widening interest spreads.

No decision was taken on whether rates will be increased or reduced.

Under the current monetary policy, private sector credit growth is targeted at 8.50%, but only 4.27% was achieved in March – one of the lowest levels on record. Inflation is targeted at 7%, while GDP growth is projected at 5%.

The Ministry of Finance has issued a fresh circular making the automated challan system, known as “A-Challan”, mandatory for all government revenues and receipts from July 1, 2026, completely abolishing the manual challan method.
FE

According to the circular issued on Tuesday, the decision aims to ensure maximum transparency in handling public funds, strengthen cash management, secure real-time digital deposits, and reduce the government's interest burdens resulting from hidden liquidity pools, UNB reports.

It noted that under the Constitution of Bangladesh and Treasury Rules, all government revenues and receipts must be deposited into the “Consolidated Fund” or “Public Account of the Republic” via the Treasury Single Account (TSA) maintained at Bangladesh Bank. All ministries, departments, and subordinate offices are legally obligated to use this account for their financial transactions.Bangladesh economic report

To streamline this, the government introduced the online “A-Challan” system using a 5-digit economic code during the fiscal year 2018-19 to ensure real-time deposits of revenues.

However, the Finance Division observed that several government offices are still bypassing the TSA framework. These offices continue to use old manual codes to deposit funds and are unlawfully maintaining separate bank accounts at various commercial banks.

This unauthorised practice prevents the government from determining its actual, real-time net cash balance. Consequently, despite having substantial cash scattered across commercial bank accounts, the state is forced to borrow from domestic and foreign sources at high interest rates to meet immediate expenditures.

To curb this fiscal indiscipline and minimise borrowing costs, the government has enforced three immediate directives. With the complete abolition of the manual system, the manual challan system will be completely shut down from July 1, 2026. A 100 percent automated “A-Challan” system must be implemented for all public revenues and other receipts from this date.

Cancellation of Independent Systems

Any separate financial systems or independent arrangements currently active across ministries, departments, directorates, and subordinate offices for collecting and depositing revenues must be cancelled immediately.Financial literacy course

Mandatory Fund Transfer by June 30

All funds currently accumulated by government offices in commercial banks must be mandatorily transferred to the TSA at Bangladesh Bank using the designated economic codes through “A-Challan” by June 30, 2026.

Major banking scandals, market manipulation, and financial misreporting have created severe capital shortages in banks and the private sector, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.

Addressing the “Financial Accounting and Reporting (FAR) Summit 2026” as chief guest at the Pan Pacific Sonargaon Dhaka, he said financial discipline in the banking and capital market sectors has not been restored despite repeated scandals.

He alleged several companies entered the stock market using false representations, which has discouraged strong firms from getting listed and weakened fair competition and price discovery.

Khosru, also the planning minister, said economic management institutions in Bangladesh have become increasingly ineffective, with accountability and monitoring systems failing to function properly.

He noted that regulatory bodies, including the Financial Reporting Council (FRC), play a vital role in ensuring transparency in corporate reporting, but said the overall governance ecosystem has weakened since the council’s establishment in 2015.

He warned against a culture of shareholders treating banks as personal property, despite banks operating mainly with depositors’ funds.

He stressed the need for a transparent and accountable financial system where regulators, institutions, and professional bodies properly discharge their responsibilities.

Referring to the self-regulation model of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in issuing exporters’ utilisation certificates, he said similar accountability mechanisms are needed in accounting, auditing, and financial reporting.

The minister said Bangladesh is attracting strong interest from international investors and global fund managers, particularly in bonds and other instruments.

However, he said such investment depends on confidence in the country’s financial reporting, auditing, and governance systems.

He urged regulators and stakeholders to work together to establish global-standard practices and restore investor trust.

Virtually addressing the event, Rashed Al Mahmud Titumir, finance and planning adviser to the prime minister, said past failures in auditing and financial oversight were driven by weak standards, lack of accountability, and conflicts of interest, where audit firms effectively acted as their own regulators.

He said unreliable financial reporting, manipulated valuations, and weak regulation had pushed the banking and capital market sectors into crisis, resulting in loan defaults, instability, and repeated scams.

He added that thousands of small investors lost money due to misleading financial statements of listed companies, while honest entrepreneurs were disadvantaged as dishonest firms attracted investment by showing inflated profits.

He called for stronger regulation, greater independence and authority for the FRC, stricter punishment for fraudulent reporting, and adoption of international standards to restore investor confidence and strengthen economic governance.

Mahmud Hasan Khan Babu, president of BGMEA, said audit reports often failed to reflect the true condition of banks despite serious sectoral weaknesses.

He said asset quality reviews later exposed multiple irregularities, highlighting major gaps in financial reporting accuracy.

He added that poor reporting led to loans being granted to unqualified borrowers, while viable businesses struggled to obtain financing.

He also noted inconsistencies where companies showed strong financial positions to banks but reported losses to tax authorities, creating challenges in tax compliance and loan recovery.

Md Sajjad Hossain Bhuiyan, chairman of the FRC, presented the keynote paper at the event. The inaugural session was chaired by Md Khairuzzaman Mozumder, secretary of the finance division.

The summit was jointly organised by the FRC, the Institute of Chartered Accountants of Bangladesh, and the Institute of Cost and Management Accountants of Bangladesh.

The government announced Tk 20 crore in incentives for cotton farmers for the 2026–27 financial year, aiming to boost local cotton production and support marginal farmers across the country, said the Cotton Development Board officials.

The CDB officials said that about 25,000 farmers of 26 districts would receive seeds, fertilisers and pesticides for cultivating cotton as an intercrop on one bigha of land.

Md Rezaul Amin, executive director of the CDB, told New Age that under the program, each farmer would receive agricultural inputs worth Tk 8,000, including seeds, fertilizers, and pesticides.

‘The inputs would include 600 grams of hybrid cotton seed, 50 kilograms each of triple super phosphate and Muriate of Potash two kilograms of boron fertiliser, 450 millilitres of fungicide and 150 millilitres of growth regulator,’ he added.

According to the CDB, cotton cultivation has become highly profitable for farmers, as the production cost of cultivating cotton on one bigha of land is around Tk 15,000, while a farmer can earn nearly Tk 60,000 by producing 15 maunds of raw cotton.

Moreover, local cotton production would also help save foreign currency as every kilogram of domestically produced cotton reduces government import costs by around $4 per kilogram.

As the world’s second-largest exporter of readymade garments, Bangladesh imported 8.1 million bales of cotton from its global sources 2025, making it the highest importer of cotton, said the United States Department of Agriculture.

Due to weaker global demand, cotton imports might slightly decline in the 2025-26 marketing year, to 7.8 million bales.
The USDA, however, projected that imports might reach 8 million bales in MY2026-27 in its recently published report.

Meanwhile, despite being a big player in the RMG export, the domestic production of cotton remained negligible, about 153,000 bales of cotton produced on 45,000 hectares of land, which accounted for less than 2 per cent of its total consumption.

CDB executive director Rezaul Amin said the government incentives would encourage more farmers to grow cotton, which could help reduce dependence on cotton imports.

He also said that the increase in cotton production through government incentives might discourage farmers from cultivating tobacco, one of the most harmful crops.

Earlier, on May 15 of 2025, the Ministry of Agriculture issued a notification announcing raw cotton as an agricultural product.

The decision came following a meeting of the council of advisers of the then-interim government on May 6 of the same year, which approved a proposal to recognize raw cotton as an agricultural product.

Due to the recognisition, it would be easy to get agricultural loans, which could encourage cotton production in the country, would be an advantage for the country.

According to the CDB, the incentive beneficiaries would include 6,200 farmers in Kushtia zone, 5,500 in Chuadanga zone, 3,200 in Jenaidah zone, 3,000 in Jeshore zone, 2,000 in Rajshahi zone, 1,200 in Bogura zone, 1,200 in Mymensingh zone, 680 in Rangpur zone, 500 in Thakurgaon zone, and 380 farmers each in Dhaka, Bandarban, Rangamati, and Khagrachari zones.

The Ministry of Agriculture would release the funds to the deputy commissioners of the respective districts. The Department of Agriculture, CDB officials, and the upazila administration would monitor the incentives,’ said Rezaul Amin.

M Gazi Golam Mortuza, an expert at the CDB, told a news agency that the incentive is being provided for the third consecutive time to increase cotton production and provide financial support to poor and marginal farmers.

Earlier, the government allocated Tk 9.90 crore for 12,375 farmers in 2023-24 and Tk 16.88 crore for 21,100 farmers in 2025-26 under similar incentive schemes.

According to the CDB, cotton sowing usually begins in mid-June and harvesting continues until December.

Cotton cultivation also contributes positively to soil health, as the repeated cultivation of the same crops on the same land might degrade soil fertility, whereas cotton cultivation could help improve soil conditions, said the CDB official.

CDB said the introduction of genetically modified cotton varieties has also played a significant role in increasing yields and reducing import dependency.

Oil prices lost about 1 percent on Wednesday after US President Donald Trump again ‌asserted that the Iran warwill end “very quickly”, though investors remain wary about the outcome of peace talks as disruption to Middle Eastern supply continues.

Brent crude futures fell $1.52, or 1.4 percent, to $109.76 a barrel by 0831 GMT and US West Texas Intermediate futures ​were down $1.36, or 1.3 percent, at $102.79.

“Prices are likely to still exhibit some upside potential even if ​a deal is concluded, given that supply will likely not return to pre-war levels ⁠immediately,” said LSEG research analyst Emril Jamil.

Similarly, PVM analysts said global oil stocks could reach critically low ​levels. “Yet, as observed lately, market players are comparatively nonchalant (or complacent) about what the conflict might bring,” PVM said.

The premium on ‌Brent ⁠contracts for delivery next month over contracts for delivery in six months - an indicator of traders’ views of current supply tightness - is around $21 a barrel, way below last month’s highs above $35.

Two supertankers left the Strait of Hormuz on Wednesday while another makes its way out after waiting for more than two months with 6 ​million barrels of Middle ​Eastern crude oil on ⁠board. The number of vessels crossing the strait remains well below the 130 or so ships that crossed daily before the war.

To make up the supply ​shortfall, countries are relying on commercial and strategic inventories.

In the US, crude oil ​inventories fell for a ⁠fifth straight week last week, according to market sources citing American Petroleum Institute data. Fuel stocks also fell.

US crude stockpiles reported by the Energy Information Administration are expected to have fallen by about 3.4 million barrels, ⁠a Reuters ​poll showed. The weekly EIA data is due at 1430 ​GMT.

In another sign of the increasing supply crunch, Britain has watered down sanctions to allow imports of diesel and jet fuel refined abroad ​from Russian crude.

Responding to Middle East crises and rising oil prices, the United Nations on Tuesday lowered its forecast for global economic growth and raised the prospects for inflation this year.

UN economists said global GDP growth is now forecast at 2.5% for 2026, down from 2.7% in January, and they said it could fall to only 2.1% "in a more adverse scenario.

That would be one of the weakest growth rates this century, outside of the COVID-19 pandemic and the global financial crisis of 2008, Shantanu Mukherjee, director of economic analysis in the UN Department of Economic and Social Affairs, said at a news conference.

On a somewhat positive note, he said, "we are not close" to a recession, but life can get harder for billions of people, and some countries may see their economies contract.

Global inflation is projected to rise to 3.9% this year, 0.8% higher than forecast in January, before the US and Israel launched airstrikes on Iran. Iran responded by blocking the Strait of Hormuz, a critical waterway for shipments of oil, natural gas, fertiliser, and other petroleum products.

"Increased energy prices are a potent factor, as are the prices of refinery products that are crucial to industrial production and commercial transport," Mukherjee said.

But he stressed that not all countries will experience the same rate of inflation.

In richer developed countries, inflation is projected to rise from 2.6% in 2025 to 2.9% in 2026. In developing countries, inflation is forecast to accelerate from 4.2% to 5.2% as higher costs for energy, transportation and imported goods erode real incomes.

The impact of the Iran war has been highly uneven, with the most severe economic damage concentrated in West Asia, a region comprised of 21 Arab countries, including those in the Persian Gulf, according to the World Economic Situation and Prospects report for mid-2026.

Economic growth in the region is projected to plunge from 3.6% in 2025 to 1.4% in 2026, "driven not only by the energy shock but also by direct infrastructure damage and severe disruptions to oil production, trade and tourism."

In Africa, average growth is projected to drop only slightly, from 4.2% last year to 3.9% this year, according to the report. And in Latin America and the Caribbean, it is forecast to slow from 2.5% to 2.3% in 2026.

In the United States, the economy is expected to remain "comparatively resilient" with 2% growth forecast this year, broadly similar to 2025, it said.

By contract, Europe "is more exposed, with heavy reliance on imported energy straining households and businesses," the economists said. Economic growth in the European Union is expected to slow from 1.5% in 2025 to 1.1% in 2026, while growth in the United Kingdom is forecast to drop further, from 1.4% last year to 0.7% this year.

In Asia, the UN said China's diversified energy mix, sizable strategic reserves and government actions are providing a buffer, so its economic growth is only expected to slow from 5% in 2025 to 4.6% this year.

India is forecast to remain one of the fastest-growing major economics, with its economy expanding by 6.4% this year, although that is lower than its 7.5% growth in 2025.

"The question for China, similar to the case of India and other countries, is just how long with this conflict and the impact of the conflict last, because all these different buffers are clearly limited," senior U.N. economist Ingo Pitterle told reporters.

A series of brutal killings in recent weeks has renewed concerns over public safety across the country, raising questions about the effectiveness of policing, crime prevention efforts, and the overall law-and-order situation.

From gang-style and politically linked killings in Dhaka and Chattogram to murders allegedly committed by family members and acquaintances in different parts of the country, the incidents have deepened public anxiety.

Criminologists say the persistence of violent crimes is eroding people’s sense of safety, as incidents of murder, sexual violence, torture, and mob brutality continue.

They advised law enforcers to take a tougher stance against such crimes while stressing the need to strengthen community policing.

In the first four months of the year, at least 1,142 murder cases were filed across the country, up from 1,017 during the same period in 2025 and 1,006 in 2024.

According to Police Headquarters data, the highest number of cases this year was recorded in areas under the Dhaka Range, with 265 cases, followed by 225 in the Chattogram Range and 78 in the Dhaka Metropolitan area.

The data further show that murders rose to 317 in March from 250 in February and 287 in January, before dipping slightly to 288 in April this year.

Rights organisation Ain o Salish Kendra’s data show that at least 115 children were killed in the first four months of the year. Among them, 12 were killed after alleged rape or attempted rape, 59 were killed following torture, while the bodies of 20 missing children were recovered.

In one of the most horrific recent incidents, eight-year-old Ramisa Akter, a second-grade student, was found beheaded in her neighbour’s home in Dhaka’s Pallabi on Tuesday. Police said preliminary investigations suggest the child was raped by her neighbour, Sohel Rana, before being murdered.

The gruesome incident has left the victim’s family devastated and sparked widespread outrage and anxiety.

Saika Sayeed, a schoolteacher and resident of Pallabi, said, “People are being murdered almost regularly. Even children are not being spared. One after another, incidents are taking place. It’s very frightening, and we don’t feel safe.

“Also concerning is that the culprits are sometimes arrested, but they get bail and commit crimes again.”

MAJOR INCIDENTS

Several incidents in April and May were marked by extreme brutality, fuelling concerns over rising violence and public safety.

At least 15 major killings reported during the period included family-related murders, mob attacks, gang violence, revenge killings, and assaults linked to personal disputes and criminal networks.

On Tuesday, Ramisa was allegedly killed by her neighbour in Dhaka’s Pallabi, while a man was hacked to death by local youths for protesting against drug abuse in Narayanganj.

Family-related violence also drew attention. On May 18, police recovered the bodies of a couple and their infant child in Madaripur, suspecting a murder-suicide. Earlier, on May 9, five members of a family, including three children, were brutally killed in Kapasia over a family dispute.

On May 17, the dismembered body of Saudi expatriate Mokarram Miah was recovered from Dhaka’s Manda area. Police arrested two women in connection with the murder.

Several incidents were linked to organised crime and revenge attacks. On May 7, Hasan Raju was shot dead in Chattogram’s Rowfabad -- which police described as a revenge killing -- while 11-year-old bystander Reshmi Akhter later died after being hit by bullets during the attack on Raju.

In Dhaka, listed criminal Khandoker Noyeem Ahmed Titon was shot dead near New Market on April 26, while suspected gang leader Alex Imon was hacked to death in Rayerbazar earlier that month.

Mob violence also remained a major concern.

According to the Human Rights Support Society, at least 71 people were killed in 132 mob-related incidents in the first four months of 2026. In April alone, 44 mob attacks left 22 people dead and 39 others injured.

In Kushtia, a pir was beaten and hacked to death on April 11 over allegations of hurting religious sentiments.

WEAK POLICING, SOCIAL DECAY FUELLING RISE

Political instability, economic inequality, and social degradation are driving a surge in brutal killings and violent crimes, said Omar Faruk.

“Following the events of August 5, the country’s social and political situation became fragile, while weaknesses in policing, lack of preventive measures, and poor coordination among law enforcement agencies created opportunities for criminals.

“Our system largely responds to crimes after they occur rather than focusing on prevention. If preventive measures, community awareness, and stronger social initiatives were prioritised, both crime and the fear of becoming victims could be reduced.”

Faruk said criminals now perceive the current situation as favourable due to what they see as weakened police preventive capacity, leading to an increase in murders, rape, and other violent crimes in recent months.

Many murders are being committed by acquaintances, including family members and neighbours, due to deteriorating social relationships, he said, adding that economic inequality, financial disputes, family conflicts, and social decay remain major drivers of violent crime.

“Law enforcement alone will not solve the problem,” Faruk said, calling for preventive social measures and stronger community involvement to stop the situation from worsening.

Contacted by The Daily Star, Khondaker Rafiqul Islam, additional inspector general (Crime and Operations) at the PHQ, said incidents of brutal crime appear to be increasing as people have become increasingly impatient and less tolerant, making such offences difficult to predict in advance.

“Unlike organised violence or unrest, personal enmities and individual motives behind these incidents are often hard to detect beforehand,” he said, adding that police have, however, been able to identify the causes behind each incident and collect evidence against those involved.

Referring to recent killings linked to juvenile gangs, political groups, and underworld networks, Rafiqul said law enforcers are continuing special drives and surveillance operations to prevent such crimes.

“No murder is desirable, and we always try to prevent such incidents. But if any crime occurs, our immediate priority is detection and bringing the perpetrators to justice.”

He added that police have instructed officers in areas witnessing higher levels of violent crime to intensify monitoring of listed criminals and other suspects as part of routine crime prevention efforts.

Exporters may need to add more value – at least by 50% – to products as the government drafts a new policy with a stronger push for reduced reliance on imported inputs and the development of backward linkage industries.

One of the biggest changes proposed in the draft Import Policy Order 2026-2029, seen by TBS, is a sharp increase in the minimum value-addition requirement for garment exports made from imported raw materials.

Officials say if an exporter fails to meet the requirement, it will not receive any cash incentive and the duty benefits on raw material imports.

For children's garments, the minimum value addition requirement may double from 15% to 30%. For all knit and woven garments made from cotton and man-made fibres, the threshold could rise from the existing 20% to 30%.

A stakeholder meeting is scheduled for today, where Commerce Minister Khandakar Abdul Muktadir is expected to discuss the draft policy with industry representatives ahead of finalisation.

If approved and implemented, the comprehensive new trade directive will remain effective until 31 December 2029.

Higher value addition requirements

Under the current import policy, there is no minimum value-addition requirement for the export of goods, except for knitwear, woven garments, and children's clothing.

However, under the draft policy, stricter value addition thresholds have also been proposed for several other export sectors. Underwear and other synthetic fibre-based specialised garments may be required to meet at least 40% value addition.

Footwear, including leather and non-leather products, may be subject to a 30% requirement. Ship exports could be subject to a 40% threshold, while wooden furniture exports may be required to achieve 50% value addition.

The draft policy also proposes a ban on importing knitted fabrics, a move that has drawn criticism from industry leaders who argue that domestic production is insufficient to meet export demand.

Exporters warn against higher thresholds and fabric bans

Bangladesh Garment Manufacturers and Exporters Association President Mahmud Hasan Khan told TBS while a 30% value addition is achievable for the knitwear sector, it remains entirely unrealistic for the woven garment segment under present market conditions.

Echoing these concerns, Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said while the government's targeted thresholds might be feasible in isolated cases, the prevailing international market dynamics make them impossible to implement across the board.

Apparel leaders heavily criticised the clause in the draft policy that seeks to enforce a blanket ban on the import of knit fabrics.

The BGMEA president argued that Bangladesh must maintain open channels to import specialised knit fabrics that are not locally manufactured, warning that failing to do so would severely cripple export competitiveness.

Adding to this, Hatem explained that halting knit fabric imports would require massive immediate investments in the domestic dyeing sector alongside guaranteed gas supplies.

The BKMEA president warned that banning fabric imports would derail crucial product diversification into high-value knitwear when "the government is currently unable to ensure consistent gas distribution and the broader economic climate is unsuited for heavy capital expenditure."

Preventing money laundering

Md Hafizur Rahman, former director general of the WTO Cell under the commerce ministry, told this newspaper that the value addition rate might be increased to prevent exporters from repatriating lower export proceeds as a means of money laundering, despite exporting at higher prices. "At the same time, encouraging exporters to use local materials could also be an objective."

However, he noted that since Bangladesh's primary goal is job creation, raising the minimum threshold for value addition is not logical. "This could hamper exports from smaller factories, which would ultimately shrink employment opportunities."

Hafizur added, "Vietnam does not have such stringent value addition requirements. Many small factories in that country import from China, add a minimal amount of value, and then export."

Changes in import entitlement rules

While the import of used vehicles, motor cars, passenger cars, and trucks older than five years remains prohibited as before, the draft import policy proposes to allow the import of electric vehicles that are up to 10 years old.

The policy also proposes changes to export-linked import entitlements under free-of-cost arrangements. The existing entitlement of up to 50% of the previous year's export value for garments, woven and children's clothing would remain unchanged. However, for man-made fibre products and synthetic underwear, the limit may be increased from 50% to 70%.

For footwear and leather goods, the proposed import entitlement is 60% of the previous year's export value. Ship imports would be allowed up to 60% of the export letter of credit value. Furniture-related import limits have been proposed at 40% for wooden furniture, 20% for fabric-based furniture and 10% for parts and accessories.

Trade facilitation and sector-specific reforms

The draft order removed the existing $5,00,000 ceiling on imports under sales or purchase contracts without opening letters of credit, expanding flexibility for businesses.

It also proposes eliminating fixed time limits for shipment after opening letters of credit, which currently stand at 24 months for machinery and nine months for other goods.

The threshold for personal imports by non-registered importers has been proposed to be doubled from $10,000 to $20,000.

For expatriate Bangladeshis, the duty-free limit for sending goods to family members has been proposed to be raised from Tk10,000 to $1,000.

Export-oriented garment manufacturers may also see an increase in the annual import quota for samples, rising from 1,500 to 3,000 items per category. Similar increases have been proposed for the footwear and leather industries, while tanneries may see their sample import limit rise from 300 to 3,000 pieces.

Policy alignment and geopolitical provisions

Although the draft did not explicitly refer to the United States trade agreement, it allowed reduced tariff imports under certificates of origin linked to preferential and free trade agreements with various countries and regions.

The draft introduced a direct prohibition on imports from Israel, stating that no goods produced in or originating from Israel, nor cargo carried on Israeli-flagged vessels, will be eligible for import.

A candid admission comes from the finance minister that many well-established companies are facing acute capital shortages, in a crunch he attributes to lack of "fair competition" and governance gaps.
FE

"Many big companies and banks are in serious capital shortage," Finance and Planning Minister Amir Khosru Mahmud Chowdhury said Wednesday while speaking as chief guest at the inaugural session of the first-ever Financial Accounting and Reporting (FAR) Summit held at a city hotel.

The summit was jointly organised by the Financial Reporting Council (FRC), the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

Turning to the predicament of banking sector, the finance minister said the current financial strain reflected deeper structural weaknesses, including distorted lending practices within banks.Bangladesh economic report

"Depositors keep money in banks, and loan approvals were often influenced by board-level decisions," he points out, adding that auditors should adopt stronger "self-regulation" to ensure transparency.

He stresses full transparency and accountability for restoring investor confidence and achieving long-term economic stability in the country.

"Bangladesh is now at a crossroads and all depend on the institutions," the finance minister implicitly reminds about the transition following political upheavals.

Mr. Chowdhury notes that the Financial Reporting Council would continue to exist but should focus on supervision and monitoring rather than direct enforcement alone.

"Every day, fund managers are contacting us-from Hong Kong, London, even JPMorgan. But if foreign investors see that our accounting is not up to international standards, they will be discouraged," he told the meet.

The minister also recalls delegating authority for issuing export-utilisation certificates to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) during his tenure as commerce minister in a previous BNP government, and says the move had improved governance after earlier allegations of corruption at the Export Promotion Bureau.Financial literacy course

He strongly feels that Bangladesh needs a financial system built on institutional integrity.

"The current government wants a system of complete transparency and accountability."

The new custodian of exchequer alerts that Bangladesh's economic future depends on institutions such as FRC, ICAB and ICMAB. "No regulator can identify every mistake daily. Accountants and professional bodies must take the lead in self-regulation."

Mentioning that institutions have weakened over time due to past "governance failures", the minister alleges that financial irregularities and bank fund diversions were often linked to misleading accounts.

"Many companies listed on the capital market used false information. Investors were misled," he deplores.

Prime Minister's Finance and Planning Adviser Prof Rashed Al Mahmud Titumir, speaking as special guest, said weak auditing practices had contributed to financial-sector instability.

"In many cases, audit firms have become their own judges," he said through online platform, adding that regulatory gaps had deepened banking-sector vulnerabilities.Economic trend analysis

He says investors had suffered significant losses due to misleading financial statements, while banks had extended large loans based on inaccurate reports that later turned into defaults.

BGMEA President Mahmud Hasan Khan told the meet that out of 7,200 registered member-organisations only around 2,500 were now active, largely due to poor accounting practices.

"Inflated accounts can destroy organisations," he notes, adding that discrepancies between assets and liabilities were a common concern in the sector.

He also warns that lack of transparent accounting discouraged foreign buyers and reduced competitiveness in export markets. Chairman of FRC Md Sajjad Hossain Bhuiyan presented the keynote paper, titled 'Reliable Financial Reporting: Where Does It Really Matter?'

Finance Secretary Dr Khairuzzaman Mozumder chaired the inaugural session. ICAB acting president Rokunuzzaman and ICMAB president Kauser Alam also spoke at the event.

The summit featured two technical sessions attended by CFOs, auditors and policymakers from leading institutions.

Listed companies in Bangladesh may soon have to overhaul their boards under rules that would limit independent director tenures, bar executives from holding dual roles and give the securities regulator direct power to remove directors.
The changes have been proposed in the draft “Bangladesh Securities and Exchange Commission (Corporate Governance) Rules, 2026” published by the commission for stakeholder feedback recently.
The draft, open for comments until May 31, would replace the existing corporate governance code with a more comprehensive rule-based framework, tightening oversight over board composition, executive appointments, subsidiary operations and documentation requirements.

INDEPENDENT DIRECTORS
Some of the major proposed changes relate to independent directors.

The draft states that an independent director can serve a maximum of two consecutive three-year terms, after which a three-year gap is required before reappointment.

The post of independent directors cannot remain vacant for more than 90 days, it also states.

The BSEC has also proposed giving itself direct authority to directly remove independent directors found to pose “a risk to the future of the company.”

The commission may make a pool of eligible candidates for independent director positions, with remuneration governed by board-approved policy and specified in appointment letters, according to the draft.

Independent directors must have at least 12 years of cumulative experience across business, corporate, government offices, academic or professional fields. However, female independent directors would need at least eight years.

BOARD AND TOP MANAGEMENT

The draft rules require that boards include at least one female director – a directive the BSEC has been pushing for years.

In a bid to strengthen separation of powers, the proposed rules mandate that the chairman and managing director or CEO must be different individuals .The chairman must also be elected from among non-executive directors.

Any director of a stock exchange, depository, central counterparty, stockbroker, stock dealer or merchant banker — except an independent director representing a holding company — would be ineligible to serve on the board of a listed company.

Under the proposed rules, a CEO or managing director of a listed company cannot simultaneously hold the same position at another listed company.

The posts of CEO, company secretary, chief financial officer (CFO) and head of internal audit and compliance must each be held by separate individuals. In addition, none of them can hold executive positions at another company concurrently, though the commission may allow CFOs or company secretaries to serve within group companies under certain conditions.

The draft rules also state that no top executive can be removed without board approval and immediate disclosure to the commission and stock exchanges.

AUDIT COMMITTEE AND GOVERNANCE

The audit committee must meet at least four times a year and include at least one financially literate independent director with a minimum of 10 years of accounting or financial management experience.

The BSEC has further proposed stronger documentation requirements for board and shareholder meetings.

The draft rules state that companies must preserve board and shareholder meeting minutes permanently, record online participation details and formally document dissenting opinions. Directors whose objections are not recorded in minutes can file complaints with the commission within 30 days.

All listed companies must arrange governance programmes for directors within one year of the rules taking effect. Newly appointed directors may also be required to complete certification programmes from institutions recognised by the commission.

The new rules will apply to all companies with ordinary shares listed on the main board, the SME board and alternative trading board of the stock exchanges, as well as any public interest entity.

SUBSIDIARIES

The rules propose tighter oversight of subsidiary companies as well.

At least one independent director from the holding company — preferably the chairman of the audit committee — would have to sit on the board of the subsidiary company.

Holding company boards and audit committees would also be required to review subsidiary affairs, investments and inter-company transactions.

The regulator will review the feedback before finalising the framework.

In Bangladesh today, the greatest struggle for ordinary citizens is no longer political uncertainty; it is economic survival. For millions of families, the daily challenge is not debating national issues but simply affording basic necessities. A visit to any local market reveals the reality: middle-income families are cutting back on groceries, while low-income households are struggling to afford even the most essential items.

At such a critical moment, the proposal by the National Board of Revenue (NBR) to increase the source tax on essential commodities from 0.5 percent to 1 percent raises serious concerns. The proposed tax hike would affect key everyday goods such as rice, pulses, edible oil, and fruits. While the increase may appear marginal on paper, its consequences in Bangladesh’s fragile market structure could be far-reaching.

In theory, a 0.5 percent increase may seem insignificant. In practice, however, additional taxation rarely remains confined to importers or wholesalers. Importers pass the extra cost on to wholesalers, wholesalers shift the burden to retailers, and retailers ultimately transfer it to consumers. In economic terms, this is known as cost pass-through, and in Bangladesh, the final burden almost always falls on ordinary citizens — basically, the final consumers.

At a time when inflation continues to erode purchasing power, such a move risks deepening public hardship. Inflation in Bangladesh is no longer an abstract economic indicator; it is a harsh daily reality. Families that once managed their monthly budgets comfortably are now forced to cut spending before the month ends. Many households have reduced their consumption of fish, meat, and fruits, while others are struggling to maintain basic nutrition.

The most troubling aspect of this proposed tax increase is that it targets essential goods — items people cannot simply stop buying. Rice, pulses, and cooking oil are not luxury products; they are necessities. Economists describe these products as having “inelastic demand,” meaning consumers must continue purchasing them even when prices rise. As a result, higher taxes on these items disproportionately hurt lower- and middle-income families.

Such decisions not only create economic pressure but also carry political repercussions because ordinary people determine a large part of their satisfaction or dissatisfaction with the government based on their everyday experiences. When people see that their incomes are not increasing but their daily expenses are rising, questions about the government’s economic management naturally emerge.

History has repeatedly shown that prolonged increases in living costs create widespread social stress and public dissatisfaction. It has been observed in various countries that a prolonged rise in commodity prices creates stress in the daily lives of ordinary people and increases expectations from the government.

In Bangladesh too, people naturally want the government to play an effective role in controlling the market situation and keeping the prices of essential commodities at a tolerable level. Therefore, it is important to consider the purchasing power of the general public and the overall market reality when making such decisions in the current situation. Timely and people-friendly measures can strengthen public trust in the government.

This expectation becomes even more significant considering the government’s repeated commitments to building a just, humane, and prosperous Bangladesh — often referred to as “Bangladesh First” — by reducing poverty, strengthening social protection, and improving living standards. Election promises emphasized lowering the cost of living and creating a more efficient market system. Yet imposing additional taxes on basic necessities appears inconsistent with those commitments.

Certainly, taxation remains essential for any government. Revenue is needed to fund infrastructure, education, healthcare, and social welfare programmes. However, an important question must be asked: should revenue generation come at the expense of ordinary people’s kitchens?

Bangladesh has long faced allegations of large-scale tax evasion, loan defaults, illicit financial outflows, and administrative inefficiencies involving billions of taka. If the government chooses to increase taxes on basic goods without taking stronger action against major tax evaders and financial irregularities, it risks reinforcing public perceptions of inequality and unfairness.

Consumer confidence remains a critical driver of economic growth. When households have less disposable income, demand declines, small businesses suffer, and economic activity slows. While taxing essential goods may generate short-term revenue, it could create long-term economic and political costs.

The responsibility of a government extends far beyond revenue collection; it must also safeguard the welfare and dignity of its citizens. At a time when many families are already struggling with rising living costs, imposing additional financial burdens through higher taxes on essential commodities is both economically questionable and socially insensitive.

Instead, policymakers should prioritize broadening the tax base, curbing wasteful public expenditures, addressing tax evasion, and strengthening market regulation to ensure greater efficiency and fairness in revenue generation.

The success of a government should not be assessed solely through large-scale infrastructure projects or ambitious development agendas. It must also be measured by its ability to reduce the everyday hardships faced by ordinary citizens. The proposed increase in source tax on essential goods is not merely a fiscal measure; it carries significant implications for household affordability, market stability, and public confidence in government policies.

Given Bangladesh’s current economic challenges, the need of the hour is to identify alternative revenue streams and implement meaningful reforms in market governance without placing further pressure on low- and middle-income households. Development, in its truest sense, should improve the quality of life for citizens, not make it more difficult.

The EU hopes Tuesday to strike a deal towards implementing its nearly year-old trade pact with the United States -- with an increasingly impatient Donald Trump threatening steep new tariffs unless it is done by July 4.

The 27-nation bloc struck an accord with Washington last July setting levies on most European goods at 15 percent, but to the US president's frustration a final version of the text still needs nailing down on the EU side.
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"A deal is a deal," the US mission to the EU posted on X Monday, saying the bloc "must live up" to the agreement sealed in Turnberry, Scotland, between Trump and EU chief Ursula von der Leyen.

Negotiators from the EU's parliament and capitals will meet Tuesday night in Strasbourg to push for a compromise that would allow the bloc to meet Trump's deadline and hopefully turn the page on more than a year of transatlantic trade battles.

Short of that, Trump has warned the EU should expect "much higher" tariffs -- and has already vowed to raise duties on European cars and trucks from 15 to 25 percent.

The tariff blitz unleashed by Trump before the Turnberry accord, including hefty levies on steel, aluminium and car parts, jolted the bloc into cultivating trade ties around the world.

But the EU cannot afford to neglect the 1.6-trillion-euro ($1.9-trillion) relationship with the United States, its largest trade partner.

Cyprus, which holds the rotating presidency of the EU, said its goal "remains, the swift implementation of the EU-US joint statement".

To reach a compromise with member states, parliament is under pressure to renege on several amendments it added to the text in March which the Americans consider unacceptable.

The head of parliament's trade committee, Bernd Lange, struck an optimistic note, saying the sides had "already made a lot of progress".

"I hope we can reach a compromise, including new propositions," Lange said.

But first, he needs to hammer out a common stance between the parliament's different factions, which looked set to keep haggling until the last moment.

The EU parliament's conditional green light came after months of delay caused by Trump's designs on Greenland and a US Supreme Court ruling striking down many of the president's levies.

The assembly's largest force, the conservative European People's Party to which von der Leyen belongs, is now pushing hard to implement an accord it says is vital to ending a period of damaging uncertainty for EU businesses.

EPP lawmaker Zeljana Zovko told AFP she was "confident that we will get it done".

The EPP has firm support from the hard-right ECR party, whose shadow rapporteur on the file, Kris Van Dijck, also said he was "cautiously optimistic".

But several political groups had yet to make their position public as of Monday night, and it remained unclear how far the majority would compromise to get a deal.

Lawmaker Kathleen Van Brempt of the Socialists and Democrats, parliament's second-biggest group, said they would "engage constructively" but fight for safeguards "to guarantee stability, predictability and protection for European businesses and workers".

One bone of contention is a suspension clause toughened by parliament that would scrap favourable tariff conditions for US exporters, should the United States later breach the terms of the deal.

Another concerns so-called "sunrise" and "sunset" clauses under which the EU side of the accord would kick in once the United States makes fully good on its pledges, and would expire unless renewed in 2028.

Green lawmaker Anna Cavazzini said "the odds are good" but warned member states would need to "budge" on parliament's main priorities.

"These past weeks have shown time and again that Trump is not to be trusted, so the EU needs stronger tools at hand," she said.

The government will include provisions or support for every community in the budget for the fiscal year 2026-27 as part of its pledge to democratise the economy.

“Many groups appeared to have been excluded from past budgets. There were no programmes for them-- no support. We will address every group in this budget,” said Finance Minister Amir Khosru Mahmud Chowdhury

He made the remarks in an interview with The Daily Star on the sidelines of the Asian Development Bank’s annual general meeting in the first week of May in Samarkand, Uzbekistan.

Khosru, who previously served as commerce minister during the BNP’s last tenure in power more than two decades ago, is now overseeing both the finance and planning ministries.

The current government’s slogan is the democratisation of the economy. If the economy is to be democratised, every group must be included, and the benefits of the economy must reach their homes, he said.

“We are planning the budget with this in mind.”

Khosru said the government had little time to formulate the upcoming budget, which is “a difficult task”.

“All indicators of the economy that we received from the previous governments were on the decline. On top of that, there is the war in the Middle East -- we have to face this crisis day after day,” said the minister.

“You can certainly understand how hard it can be. But still, we are optimistic,” he added, noting that when the BNP had previously come to power, it restored macroeconomic stability and discipline in the financial sector.

Bangladesh Bank (BB) has instructed treasury heads of commercial banks to play a responsible role and refrain from manipulating the US dollar exchange rate in order to keep the foreign exchange market stable.

BB Governor Md Mostaqur Rahman gave the instruction at a meeting between the central bank and treasury heads of commercial banks, held at the BB headquarters in Dhaka today.

Treasury heads of three private commercial banks, seeking anonymity, told The Daily Star that the BB governor asked them for suggestions on how to stabilise the forex market and exchange rate.

Recently, several banks increased their forward booking of US dollars, which affected the market, prompting the authorities to call the meeting.

According to them, the governor said the banking regulator does not want to intervene directly in the market and therefore asked banks to behave responsibly.

One of the treasury heads said officials of the central bank raised questions about forward selling and asked banks to rationalise the practice, saying it contributes to volatility in the forex market.

The official also said it would be difficult to stop forward selling as it works like insurance.

Forward selling in the forex market involves entering into an over-the-counter (OTC) contract to sell a specific amount of one currency for another at a predetermined exchange rate on a fixed future date.

It allows businesses and investors to lock in exchange rates and eliminate currency risk.

The treasury heads also said they informed the central bank during the meeting that there is little scope for banks to manipulate the market.

According to them, exchange houses and exporters are more likely to be responsible for market volatility.

The treasury heads also informed the governor that central bank officials had verbally instructed lenders not to increase the US dollar rate, which they described as a form of intervention.

A senior official of the central bank told the newspaper that the banking regulator warned lenders not to get involved in market manipulation.

The interbank exchange rate has been hovering at Tk 122.75 per US dollar for the past one and a half months.

On Tuesday, banks were buying US dollars at Tk 122.75 per dollar and selling them at Tk 123.50 per dollar.

To keep the forex market stable, the banking regulator has also continued buying US dollars from the market. Yesterday, it purchased $85 million from six commercial banks at a cut-off rate of Tk 122.75.

As a result, total purchases in the current fiscal year have surpassed $6 billion, according to BB data.

Bangladesh Bank has been buying US dollars since the beginning of the current fiscal year amid improved inflows and easing pressure on the foreign exchange market.

The treasury heads argued that the forex market has not yet become fully market-based.

“Bangladesh Bank still intervenes at times in determining the exchange rate. Even during dollar purchases through auctions, the central bank provides instructions.”

BB Deputy Governor Md Habibur Rahman, Executive Director Sarwar Hossain, Director of the Foreign Exchange Policy Department Md Bayezid Sarker, and other officials of the department were present at the meeting.

Bangladesh’s steel manufacturers yesterday urged the government not to raise electricity tariffs further, saying higher energy costs could deepen the sector’s crisis by triggering production cuts, financial losses and possible factory closures.

At a press briefing organised by the Bangladesh Steel Manufacturers Association (BSMA) at the Economic Reporters’ Forum in Dhaka, industry leaders said the sector was already under pressure from rising utility prices, weak demand, high borrowing costs and low utilisation of installed capacity.

“If electricity prices are increased again, production costs will rise sharply, and many factories may be forced to reduce output. Some could even face partial or complete shutdown,” said Mohammad Jahangir Alam, president of BSMA.

The association said industrial electricity tariffs have risen around 30 percent in recent years, while gas prices for some industries climbed nearly 300 percent, hurting the competitiveness of one of the country’s largest manufacturing sectors.

As part of the ongoing electricity tariff review, the Bangladesh Power Development Board submitted a proposal to the Bangladesh Energy Regulatory Commission seeking higher bulk electricity purchase rates.

BSMA said the proposed tariff hike comes at a time when steel makers are still dealing with the fallout from the Covid-19 pandemic, global supply chain disruptions, the Russia-Ukraine war, exchange rate volatility and geopolitical uncertainty in the Middle East.

The association also criticised demand charges, additional VAT and power factor penalties imposed on industrial consumers, saying those charges effectively act as indirect tariff increases.

According to BSMA, most large steel mills receive electricity through high-voltage connections ranging from 33kV to 230kV, where transmission and distribution losses remain low. Despite this, industries continue to bear additional charges.

It also questioned the power sector’s capacity payment system, claiming that more than Tk 50,000 crore is paid annually in capacity charges even as industries struggle with rising energy bills and inadequate gas supply.

BSMA urged the government to keep electricity prices unchanged for the steel sector, reduce demand charges and VAT, review power factor surcharges and introduce special tariff facilities for high-voltage industrial consumers.

Responding to reporters, BSMA President Jahangir Alam said many mills were operating at a loss amid sluggish construction demand, rising financing costs and increasing production expenses.

He said an additional Tk 2,000 in production costs per tonne would be difficult for the construction sector to absorb and could further slow real estate and infrastructure activities.

“Many factories were built with significantly higher production expectations, but now they are operating at only around 40 percent capacity,” he said.

BSMA Secretary General Suman Chowdhury said electricity accounts for nearly 30 percent of steel production costs, making the industry highly vulnerable to tariff hikes.

According to BSMA, annual steel demand in Bangladesh has fallen to around 40-50 lakh tonnes against the installed production capacity of nearly 1.2 crore tonnes.

Among others, Salam Group Chairman Md Rezaul Karim and BSMA Vice-President Sk Masadul Alam Masud, who is also managing director of Shahriar Steel Mills Ltd, addressed the briefing.